Distressed Mayo homeowners urged to consider mortgage to rent
More than 15 years after the financial crash, thousands of households across Ireland are still living with its consequences. In Mayo alone, an estimated 430 homes remain in mortgage arrears of 12 months or more, with many tracing their difficulties back to the period between 2008 and 2010.
For a significant number of these families, arrears are not a temporary setback but a long running reality. In many cases, missed payments have built up over several years, and as a result, over 250 Mayo mortgage accounts, mostly family homes, have been threatened with legal action or are already within the legal system.
Stephen Curtis, CEO of Irish Homes, said the figures underline the number of families facing prolonged uncertainty about their homes and point to a cohort of borrowers who have been living under intense financial pressure for years, many of whom are now approaching retirement age. Mr. Curtis said:
“There is a forgotten group of borrowers in Mayo who went into arrears during the financial crash and simply never found a way out. Many are older homeowners, nearing retirement, with no realistic prospect of clearing unsustainable mortgage debt.
“For many households, living under the threat of legal action for years takes a serious toll. While the courts can be understanding, the reality is that those who cannot meet repayments indefinitely eventually exhaust their options and face the risk of repossession”.
The Mortgage to Rent scheme (MTR) is a government led initiative to assist eligible borrowers who are in long-term mortgage arrears and at risk of losing their homes. Under the scheme, the property is purchased by an approved housing body or an approved private provider, the borrower’s unsustainable mortgage debt is cleared or written off, and the family remains living in the home as a social housing tenant, paying rent that is linked to their income rather than the original mortgage. Remedial works and energy upgrades are typically carried out as part of the process, to bring the property up to lettable standards.
While ownership changes, the household gains long-term housing security through a formal tenancy, with the possibility of buying back the home in the future if their financial situation improves.
Mr Curtis said that for some households, Mortgage to Rent can provide long-term stability where the mortgage is no longer viable.
“For households whose mortgage is no longer sustainable, Mortgage to Rent can provide housing security and stability when there are few if indeed no other potential solutions”.
Households in long-term mortgage arrears, or those facing legal action on their family home, are encouraged to seek advice and explore all available supports at an early stage.
Independent organisations such as the Money Advice and Budgeting Service (MABS), housing charities, and Personal Insolvency Practitioners (PIPS) can provide free, confidential guidance.
For borrowers in severe financial difficulties Mortgage to Rent may offer a pathway to being able to remain in the family home and avoid repossession.